Real Estate Commission targets agent, broker

The North Carolina Real Estate Commission has accepted the voluntary surrender of an agent’s real estate license and temporarily suspended the license of a Mooresville broker.

Shena Montgomery surrendered her real estate license to the commission, which in turn dismissed without prejudice all charges against her. The commission had accused her of not placing earnest money deposits into a trust or escrow account, failing to maintain records, not delivering closing documents, and endorsing the signature of another without power of attorney, conduct which, if proved, would have provided the basis for disciplinary action by the commission. Montgomery did not admit or deny misconduct.

Montgomery says she believes a vindictive family member whom she helped in a real estate transaction a couple of years ago reported her to the commission.

“It really caught me off guard. It came from nowhere,” she said of being notified of the charges by the commission a couple of months ago. “If you’ve got a problem with somebody, why wouldn’t you go to that person?”

She said the earnest money from the deal had been placed in a business account and that all the deposits were available. She explained that her failure to maintain records stemmed from being unaware of a 14-month data storage timetable at the company that provided the online template for records. In addition, she contends the attorney was responsible for providing the closing documents. Montgomery says she submitted the offer without power of attorney because her client had already lost out on several deals and she faced a time crunch.

“I did what they asked me to do,” she said. “I was trying to get them what they wanted.”

Montgomery said she has been licensed for almost 20 years and has always been an ethical Realtor. “I’ve always gone over and beyond to give my clients a ‘wow’ experience,” she said.

When asked why she opted to surrender her license rather than dispute the commission’s charges, Montgomery said she was focused on caring for her ill grandmother, who recently died.

Her license surrender will be for three years, effective Jan. 1.  Montgomery said she plans on returning to a career in real estate in 2018.

In the second case, William Edward David Jr. reportedly operated a vacation rental-property management company called LKN Vacations that was not licensed and did not have a qualifying broker or broker-in-charge. According to the commission, his rental property agreements didn’t include his broker license number and his lease agreements failed to contain the required disclosures of the Vacation Rental Act or the interest earned on deposits. Additionally, the commission said, David didn’t follow the regulations on maintaining an escrow account.

The commission suspended David’s broker’s license for two years. However, if he completes certain real estate courses by Jan. 15, the remaining 23 months of the suspension are to be stayed and he will be placed on probation.

David could not be reached for comment.